Is vat applicable on jobwork?

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We have engineering workshop doing jobwork of machinery parts where the material provided by party. So let you know whatever i charge to party as jobwork amount then same is applicable for VAT?

Replies (8)

In the process, if u use any material, then u need to charge VAT on such material. If only service, then ST if it exceeds exemption limit.

when you give service with material you are liable to pay vat , and if you paid only service you are liable to pay service tax

Yes you have to pay tax as a works contractor tell me the state in which you required the procedure. I will tell you the whole procedure Kindly what's App me on 9891987513. I will tell you the procedure for adjustment of the material provided by the party.

If you are not using any of the material you only do is to provide the service then you dont need to pay VAT at all. you will need to collect only service tax. If you use any of the material and some are provided by the party then you need to pay tax as per the works contract provision of the respective state. 

Is vat only on material used for jobwork or including jobwork value also....
If u r not purchased material not need to pay VAT. But u have to pay service tax which exceeds service above 10 lakhs. VAT registration required when this will u take as a works contract
Dear Pratheep Kumar If the value of material and value of service is be able to split easily then vat will be applicable on material and service ta will be applicable on the portion o service and I lf it is not possible to split the value between material and service then the provision of works contract will be applicable as per state vat laws. Need further clarification reach me at sharvankumar100327 @ gmqil.com Or what App on 9891987513 Thank you

If you are doing only machining vat is not applicable. but its including electro plating like phosphating or zic plating 5.5 % vat is applicable as per shedule.


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